FATAL INERTIA™ TO USHER IN A BRAVE NEW WORLD OF COMBAT RACING

Burlingame, CA -- July 2, 2007 -- KOEI, recognized worldwide as the premier brand of strategy and action games, today announced that Fatal Inertia is scheduled to ship to North American retailers on September 11, 2007 for Xbox 360 video game and entertainment system from Microsoft.

"KOEI has been at the forefront of creating the most engaging action games, so with Fatal Inertia we're now lending our action game talents to the racing genre to deliver an experience that is as fun as it is fast," said Senior Vice President of KOEI Corporation Amos Ip. "Armed with an eclectic variety of weapons and racing challenges, plus elegant and intuitive driver controls, Fatal Inertia is quite simply bringing high-speed fun and excitement back to the combat racing genre."

"By designing Fatal Inertia's gameplay around a physics engine it not only allowed us to create a truly different driving model, but it also helped us create a set of dynamic weapons with multiple tactical applications," said Lead Game Designer Michael Bond. "We've based many of the game's weapons on straightforward physical principles, and by doing so we're giving players the freedom to come up with their own creative ways of using them- ways that even we are still discovering."

Fatal Inertia is the debut title from KOEI's Toronto-based development studio, KOEI Canada. The team is led by Producer Takazumi Tomoike, creator of the Dynasty Warriors® series, and KOEI Co-Founder and Chief Advisor Yoichi Erikawa, who under the pen name Kou Shibusawa is regarded as one of the world's top video game designers.

About Fatal Inertia

In the middle of the 22nd century mankind's thirst for excitement has spawned an evolutionary sporting event that draws from the combined disciplines of rally racing, demolition derby and high-performance aeronautics. In this brave new world of combat racing, gravity-defying machines are no longer confined to the speedways and stadiums of centuries past. In this grand spectacle of racing, the amphitheatre where drivers must prove their superiority is the untamed wilderness.

Through harsh environments spanning dense rainforests to immense glacier fields, and canyons of razor-sharp rock there is little room for error as drivers will reach speeds of over 500 mph. But Fatal Inertia is not merely a test of speed. The brave men and women who choose to compete must face the mental and physical punishment of low-altitude combat maneuvering.

In Fatal Inertia each craft will be armed with a unique array of unconventional weapons that manipulate velocity, force and even time. Explosive magnets that impact racecraft stability and rockets that can counter thrust and velocity are just some of the dangers drivers must face. But with each racecraft hovering just a few feet from the earth, any misguided attempts to evade or dislodge these weapons can result in total (if not fatal) disaster.

Powered by the award-winning Unreal® Engine 3 from Epic Games, Fatal Inertia boasts fast-paced single and online multiplayer experiences, eight racing series, six distinct racing environments, plus full racecraft customization. Fatal Inertia delivers a glimpse into the future of racing in stunning 720p HDTV and in game Dolby® Digital audio. This game is rated "E10+" (Everyone 10 and older - Fantasy Violence) by the ESRB. Press can find (watermark-free) assets at gamespress.com.

About KOEI Corporation

KOEI Corporation, the North American subsidiary of KOEI Co., Ltd. of Japan, established operations in 1988. Based in the San Francisco Bay Area, the company is recognized as a leading content provider in the highly competitive video game industry.

KOEI is respected worldwide as the premier brand for Strategy and Simulation games, and is the innovator of the Tactical Action genre. The company's Dynasty Warriors® series has generated more than 9 million units in sales worldwide since its first release for the PlayStation® game console in 1997.

KOEI develops, publishes, and distributes interactive software worldwide for video game systems and personal computers. For fiscal 2005, KOEI posted worldwide revenues of $223 million. KOEI maintains operations in Japan, the United States, the United Kingdom, France, Canada, China, Korea, Taiwan, Singapore and Lithuania. The company constantly seeks the fine balance between entertainment, technology, art and education. More information about KOEI game products can be found online at koei.com.

Fatal Inertia ®KOEI CANADA Inc. All rights reserved. Dynasty Warriors and the KOEI logo are registered trademarks or trademarks of KOEI Co., Ltd. All rights reserved. "PlayStation" and the "PS" Family logo are registered trademarks of Sony Computer Entertainment Inc. Microsoft, Xbox, Xbox 360, Xbox Live, the Xbox logos, and the Xbox Live logo are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries The ratings icon is a trademark of the Entertainment Software Association. "Dolby", "Pro Logic", and the double-D symbol are trademarks of Dolby Laboratories. All other trademarks are properties of their respective owners.